The National Social Security Fund has triumphed in the 40 billion shilling compensation dispute with construction firm Alcon International.

A panel of seven Supreme Court Justices led by the Chief Justice Benjamin Odoki have ruled in favor of the National Social Security Fund.

The judges have allowed an appeal by the NSSF challenging a 40bn shilling award to Alcon International Uganda that was not party to the signed contract to construct Workers House.

The construction company sued NSSF seeking compensation for arbitrarily terminating its contract to build Workers House.

In 2009 the Court of Appeal dismissed all grounds given by NSSF, and upheld the lower court’s multi-million dollar award to Alcon.

Richard Byarugaba NSSF Managing Director

The NSSF then filed an appeal at the Supreme Court that stopped payment of the said amount to Alcon on grounds of breach of contract.

The same court has faulted the lower courts’ decisions of using fraudulent information that was deliberately concealed by directors of Alcon International Kenya during the signing of the contract.

Court also discovered that Alcon Kenya misled the NSSF when it substituted one company with another during the signing of the contract, and that Alcon Uganda did not have the expertise to do the job.

The Judges have now ordered that the matter be referred back to the High Court because no party had agreed to arbitration.

The ruling was read by the Deputy Registrar of the Supreme Court Godfrey Opuseni.

The NSSF Managing Director Richard Byarugaba has welcomed the ruling.

Here is the full ruling of the the Supreme Court